Factoring Approval Process- Get the Funding you need Fill out this form, and a credit manager will contact you shortly. Alternatively, call 215-688-5806 to speak directly with a representative.

A factoring company offers financial solutions to businesses facing cash flow issues due to slow-paying customers, often who are on net 30-to Net 90 terms. A factoring company can purchase accounts receivable at a discount, which provides their clients with immediate cash flow. This enables businesses to resolve their financial challenges quickly and continue their operations smoothly. The factoring company will then act as an extension of your company and collect the outstanding invoices.

The main costs include fees charged by the factoring company, ranging from 1% to 3.5% based on your industry and volume.

Invoice financing, also known as factoring, entails selling your accounts receivable to a factoring company to receive immediate cash. In contrast, traditional lending involves securing a loan based on the business's credit history and other financial criteria. The main distinction is that factoring evaluates the creditworthiness of your customers rather than your business.

Any business that can not wait 30-90 days to get paid. Factoring is especially beneficial for many businesses that have extended cash flow cycles, including but not limited to:

• Transportation and logistics companies
• Construction firms
• Manufacturers
• Distributors
• IT and technology companies
• Medical companies
• Staffing companies

In recourse factoring, the business retains responsibility for unpaid invoices if customers default or go out of business. On the other hand, non-recourse factoring shifts the risk to the factoring company, which absorbs the loss if customers fail to pay. If one chooses a non-recourse contract, your factoring rates may be slightly higher than in a recourse contract.

Clients often worry about requiring their customers to send payments to a new address when using factoring services. However, this is a standard and straightforward procedure in the industry. The factoring company handles this through a notice of assignment, which informs customers of the updated payment instructions. This process not only ensures seamless payment processing but also contributes to efficient cash flow management, providing you with a secure financial footing.

If you are trying to do business with new customers, it is wise to check their commercial credit. You can easily check a new or potential customer's creditworthiness using a factoring company portal. It is a free service and one of the benefits of being a factoring client. Extending payment terms, such as net 30 to 60 days, is standard when selling to commercial customers. However, not all companies are financially reliable. Some may delay payments significantly—30, 60, or even 90 days overdue—while others might not pay after receiving your goods or services. These situations can severely disrupt your cash flow and create substantial financial risks. Properly assessing your client's business credit is crucial to avoiding these challenges and maintaining a healthy cash flow.

No, this is the beauty of having a factoring company as a partner. You can pick and choose which invoices to submit and which ones not to submit.

Depending on the industry, you will need a list of your customers and an aging report.

You would need to have your own authority, your own MCDOT Number. Also, you need to provide a list of customers you are working with or planning to work with.

You have several options. First, we would need to see when your contract expires. Factoring contracts can have different terms, and some may be month-to-month. Early termination may carry a penalty, but it could also lead to a more beneficial arrangement. Please reach out to us so that we can determine ways how to help you. Factoring companies that we work with may consider buying your account out.

Yes, we can. Often, there are many other issues that the customer may not be happy with, such as factoring company customer service, prime-driven rate, or percentage of reserve.

Factoring contract durations can be monthly or up to 24 months. Please reach out to us so we can find you the best option available.

Capital MBS is a leading finance company and one of the few companies in the industry that has been in business for over 10 years. As one of the leading trade finance intermediaries, we have helped many clients get the financing they need. We can help you select the best factoring company for your situation. We can help you obtain working capital, equipment financing, and a line of credit. We understand how credit works, and we can help you improve it. Additionally, we have factoring partners that offer many solutions under one umbrella, including but not limited to factoring, equipment financing, insurance financing, dispatch services, and factoring advances.

Payroll financing is gaining traction as an effective way to provide working capital to companies that need funds to pay their employees. Businesses with large payrolls often experience cash flow problems due to slow-paying clients. When this happens, companies must dip into their cash reserves to cover payroll, which can prevent growth, especially if the company is expanding quickly. Traditionally, consulting companies and staffing companies have used payroll financing. However, this solution suits companies across various industries that need funds to meet payroll and sell products/services to commercial clients. Payroll financing is also available to small businesses and startups that meet the funding requirements. Here, we discuss the pros and cons of payroll financing, emphasizing payroll financing through invoice factoring. Advantages

1. Enables Business Growth The most significant advantage of payroll financing is that it supports business growth. Commercial clients often pay invoices slowly, typically in 30 to 60 days. This delay can hurt your cash flow and prevent you from adding staff to handle increased demand. Payroll financing enables you to hire the necessary staff to fulfill new client orders and grow your Business.
2. Ease of Access Some types of payroll financing, such as factoring, are relatively easy to obtain. The primary requirement is working with creditworthy clients. Unlike traditional underwriting, factoring companies don't require extensive credit checks, making it an ideal solution for small and growing businesses that can't meet bank lending standards.
3. Credit Lines offered through a factoring solution are flexible and can grow with your Business. This flexibility is crucial when your Business is gaining new orders and needs additional staff. The line adapts to your needs as long as your clients have good commercial credit and your company meets the funding requirements.
4. Transition to Conventional Financing Factoring can serve as a stepping stone to conventional financing solutions, such as business lines of credit. Many companies use factoring for a few years and then transition to more traditional financing options once they've established a financial track record. Although lines of credit may have more restrictions, they are generally more cost-effective and suitable for maturing businesses.
5. Offering Competitive Terms A significant challenge for businesses is that most commercial clients pay in 30 to 60 days, while employees must be paid every one to two weeks. Without adequate cash reserves, this model can hinder growth. Payroll financing bridges the gap between providing a service and getting paid, allowing you to offer competitive terms to your clients and add new clients confidently.
6. Quick Access to Funds Some payroll funding solutions can be obtained quickly. For example, a factoring line can usually be set up within a week, though the exact time frame depends on the client's circumstances.
7. Debt-Free Transactions Unlike traditional loans, factoring transactions are typically structured as the sale of your receivables rather than a loan against them. This structure can be beneficial for larger companies seeking conventional funding later on.

Conclusion Payroll financing can be a valuable tool for businesses that have cash flow challenges due to slow-paying clients. By leveraging invoice factoring, companies can access the funds needed to meet payroll and continue growing without depleting their cash reserves. Despite the higher costs compared to traditional bank lines of credit, the flexibility, ease of access, and ability to offer competitive terms make payroll financing a viable option for many businesses.

Factoring improves medical business cash flow. It provides immediate cash by selling your invoices, ensuring timely payroll and operational expense management. Supports Growth Factoring supplies the necessary working capital to meet payroll and hire additional staff, supporting smooth expansion. Focus on a Medical Niche for Success You can go after more business when you know you are getting paid on time. Focusing on a specific nursing niche, such as hospitals, physician offices, adult daycare centers, home healthcare services, or assisted-living facilities, allows your agency to become an expert, build a reputation, and grow effectively. Finding and Retaining Clients Finding the right clients is challenging in the competitive nursing staffing market. Payroll financing through invoice factoring can help overcome cash flow issues caused by slow-paying clients. Conclusion For nursing staffing agencies, specializing in a niche and using invoice factoring can enhance success by providing immediate cash flow relief, supporting growth, and offering competitive terms. Despite higher costs than traditional bank lines of credit, factoring flexibility and quick access make it invaluable for new and growing health agencies.